Nifty Gap Down Opening : Trading Plan

Nifty Spot View: 09/02/2024
CMP: 21717.95
Moving AVG (EMA) 20 Hour & 40 Hour: 21845 & 21835
Moving AVG (EMA) 20 Day & 40 Day: 21672 & 21432
Support & Downside Range: 21640-21610 zone, 21475—21450 zone, 21250--21135
Resistance & Upside Range: 21775—21834 zone, 21947—21970 zone, 22055—22125 zone
Short Term Trend Reversal Level: -- 21660-21640
Trading View: In today's trading session key level to watch is 21640—21610 support zone after opening if this support zone manage to hold then we may immediate see upside move towards 21775—21834 minimum to max 21947—21970 levels whereas after opening if 21640—21610 manage to break on 30 mins to 1hr sustain basis then we may immediate open for downside 21475—21450 minimum to max 21250—21135 levels, so understand the importance of 21640—21610 support on intraday sustain basis & act accordingly.

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Last day data analysis

Following a gap-up opening, the Nifty observed profit booking above the 22000 level and traded with a negative bias for the duration of the day. Ultimately, the Nifty closed in the negative territory, registering a loss of 0.97 percent.

The Nifty Midcap 100 index showcased better performance in comparison to the Nifty 50 index, closing relatively unchanged with a marginal loss of 0.05 percent.

Among various sectors, PSU Banks and Media emerged as the standout performers, showcasing robust performance. Conversely, FMCG and Private Banking underperformed, encountering challenges and displaying weaker results throughout the trading session.

The options market indicates that the highest open interest on the call side is at the 22000 level, while on the put side, it's at 21500. Today's option chain shows that there is more call writing than put writing, indicating a negative sentiment in the market.

The system suggests a trading range for the next day between 21575 and 21930.The Max Pain is seen at 21800 spot with the CE/PE Combined Residual Premium/Pain Value of 197.56 Crores.

In the cash market, Foreign Institutional Investors (FIIs) were net sellers with an activity totaling 4933.78 crore, while Domestic Institutional Investors (DIIs) exhibited a net buying activity of 5512.32 crore.

In the index futures segment, we noticed a negative shift from Foreign Institutional Investors (FIIs) with short additions, while clients showed a positive trend with long additions. Additionally, Domestic Institutional Investors (DIIs) displayed a positive change with short covering.

In the index options segment, we observed a slight negative change from Foreign Institutional Investors (FIIs), characterized by put addition and call writing. Conversely, clients exhibited a positive trend with call additions and unwinding of puts. Additionally, proprietary traders (Pro) displayed a negative change with put additions and call writing.